IRS Announces 2024 Direct File Pilot -

As expected, the IRS has announced it will roll out a 2024 pilot for a program that will allow taxpayers to prepare and file their returns directly with the IRS. Known as Direct File, the program will initially be subject to various limitations as the IRS works out the inevitable bugs and evaluates how to meet all the needs of such a program on a broader scale:

The pilot program will be able to handle only certain types of income, deductions and credits. No gig workers, no itemized deductions.
The pilot program will be open only to taxpayers in states with no income tax, or in states (Arizona, California, Massachusetts, New York, Washington) that have agreed to cooperate with the IRS on this effort.
Even within those states, the program will be rolled out gradually while the IRS identifies and addresses problems.

The IRS stresses that using Direct File will be optional. Even after the program is fully operational, taxpayers will be able to use tax professionals, commercial software, or other methods if they choose to do so.

What about state tax returns?

The program will not directly prepare state tax returns, but IRS says Direct File will guide taxpayers who want to file a state return to a state-supported tool that taxpayers can use to prepare and file a stand-alone state tax return.

Will the IRS automatically fill in data it already has?

The IRS receives much of the data needed for these simple returns from the employers and financial institutions that send you forms such as W-2 and 1099. It’s possible the Direct File program will offer to fill in those parts of the return automatically, but the IRS announcement doesn’t say whether this capability will appear in the pilot.